Tax Increment Financing Districts (TIF)

Tax increment financing is a tool authorized by Chapter 311 of the Texas Tax Code by which local governments can publicly finance needed structural improvements and enhanced infrastructure within a defined area called a reinvestment zone. For more information about this tool, view the City of Fort Worth’s adopted TIF Policy.

The tax increment is derived from the difference in appraised value between the year in which the reinvestment zone is established (base year) and each year the reinvestment zone is in existence.

A municipality establishes a TIF reinvestment zone according to guidelines in the Texas Tax Code and other taxing entities elect to participate in TIF by approving a participation agreement, which sets forth the percentage of tax increment the taxing entity is willing to dedicate to the TIF fund.

A board of directors, consisting of 5 to 15 members who are representatives from the participating taxing entities and representatives of other areas as set forth in the Tax Code, is established for each TIF.